World News
07/01/2002
BUSINESS ROUND-UP
April bookings show year-over-year growth
North American toolmakers posted $982 million in orders in April, a 17% increase from the revised March level of $836 million, and 36% above April 2001's level, according to the latest report from Semiconductor Equipment and Materials International (Semi). This is the first time this year that year-over-year bookings have shown growth.
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The three-month average of worldwide billings in April 2002 was $822 million — 3% above the revised March level of $798 million. The book-to-bill ratio for April is 1.20, according to Semi.
Global chip sales also headed up, hitting $11.07 billion in April, a 3.1% increase from the $10.73 billion reached in March, with all geographic regions reporting growth for the second month in a row, according to the latest Semiconductor Industry Association report. April 2002 sales were down 19.4% from April 2001, according to the SIA.
Additionally, in VLSI Research's latest Industry Pulse Pro report, the analyst house detailed a frontend capacity utilization of 80.2% for April.
Global wafer shipments up 15% in 1Q02
Worldwide silicon wafer area shipments improved by almost 15% during 1Q02 when compared to 4Q01 area shipments, according to Semi. Total silicon wafer area shipments were 1011 million in.2 during the first quarter of 2002, up from the 878 million in.2 shipped during the previous quarter. This was the second quarter in a row in which wafer shipments increased sequentially.
APC, productivity, fab yields all key at Manufacturing Conference
Automatic process control, productivity, shorter cycle times, improved yields, faster fab ramps, and even fab layout were all explored at the IEEE/Semi Advanced Semiconductor Manufacturing Conference in Boston.
While this is a transition year in revenues for the tool industry after the worst decline on record in 2001, we should see a boom over the next two years, Bob Johnson, a Dataquest analyst, predicted at one of the keynote sessions. Though this year may see a 19% dip in revenues (after dropping 31% in 2001), Johnson sees a rise of 43% in 2003 and 48% in 2004. While he predicts a pickup in PCs in 2H02, the main growth drivers will be in segments such as consumer gear, mobile equipment, and automobiles.
To back up his rosy projections, Johnson cited comments of Craig Barrett, CEO of Intel, who said that he had visited over 30 countries recently, and every one of them saw information technology as the key to its future growth. "Interconnectedness" will be a major driver for the next buildup, Johnson said. But while he sees a couple of strong "up" years ahead, he believes that industry cycles will not only continue, but become more volatile as they become more closely linked to world economies.
"300mm will be the darling of the upswing," Johnson commented, with the current cycle peaking in 2005 and the obligatory decline starting in 2006.
Poor planning and misallocated spending can result from the excessive hype that has begun to pervade the industry, for new technology or emerging markets, Johnson suggested. There may be valid potential, but inflated expectations can lead to disillusionment and some failures before the new entry finds a solid market with good business models.
Johnson also noted that patterned silicon wafers are becoming commodities, with universal access to leading-edge processing as foundries such as TSMC virtually match the technology level of the leading integrated device manufacturers. This means IP will drive profits rather than manufacturing prowess, and time-to-market and cycle times will become even more critical.
Intel's new 300mm fab
A highlight of the conference was a presentation of Intel's new 300mm Fab 11X in Albuquerque, NM, by Bruce Sohn of Intel Corp. The operation of this facility, due to come on line in 4Q02, will be close to the ideal of a "lights out" factory.
"There is no handling of wafers, ever," Sohn emphasized. There will be about 1000 workers, almost all in maintenance, because few operators are needed. By year's end, according to Sohn, 30% of Intel chips will be made on 300mm wafers, including those from the D1C fab in Oregon that went on line in 2Q02. Intel's F24 300mm fab in Ireland is scheduled to come on line in 4Q03 with 90nm devices, he added.
While it costs more to build 300mm fabs (over $2 billion, with 75% for the cost of the tools), they ramp much faster, and they are expected to last for 20 years. Added process complexity is a major reason for escalating fab costs, Sohn said. "We have several slurry systems for CMP, and there used to be none, and there is more hazardous materials handling," he cited as examples. He predicts that the cost for a new fab will rise to about $10 billion by 2010. Also, since wafer area has been doubling roughly every 10 years, he expects the transition to 450mm wafers will come in about 2015.
Sohn ticked off a list of major advantages for 300mm fabs — they ramp faster, and are more productive and flexible, allowing agility in manufacturing operations. He cited compelling productivity improvements, with 2.4X die, 30% cost reduction, 50% less labor content, less floor space, and 40% less energy and water consumption per die. The capital costs for 0.13μm devices on 300mm is about half those for 200mm wafers per IC processed, Sohn said, with much less materials consumption and less environmental impact.
The building was constructed with full knowledge of the tool set, and Class 10 cleanrooms are sufficient because of the sealed FOUPs. There is a trilevel automated materials-handling system (AMHS) with a dual stack system, one running clockwise and one counterclockwise, with 20-foot ceilings for 300mm stockers. There is a sub-fab below the main fab, and a trench up and down the main backbone rather than a full basement.
Lots of simulation is needed, according to Sohn, for operations integration. The whole factory is run from a command center. Automatic process control (APC) is not just for process quality, he explained, but also to make the tool set more stable. To get higher utilization, a good scheduler is needed. Simulation shows that the addition of APC will enable a 6% shift in the work-in-process inventory in the fab, Sohn said.
USA
The largest merger in the history of semiconductor-processing automation was completed with Brooks Automation's acquisition of PRI Automation for $536 million. Brooks-PRI will have 34% market share of the automation segment on a pro forma basis, according to company officials. Changes for the two combined companies include the elimination of 300 to 400 employees worldwide across the board (3000 employees will remain); the consolidation of 11 sales and service locations; and the elimination of three or four manufacturing/headquarter sites.
TriQuint Semiconductor, Hillsboro, OR, has agreed to buy German chipmaker Infineon Technologies' GaAs business. The companies agreed to work together on radio designs for wireless phones and devices. They formed a partnership to develop and produce RF components and modules for customized wireless systems.
Shipley Co., a wholly owned subsidiary of Rohm and Haas, is nearing completion of the first of three phases of construction on its advanced technology center in Marlborough, MA. The center is targeted at fast cycle development of 193nm photoresist and antireflective coatings for photolithographic processes. Phase one, which includes an investment of some $25 to $30 million, is expected to be up and running by the end of CY02.
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Novellus opens new facility
Novellus opened a $163 million addition to the old Oki Data semiconductor site in Tualatin, OR, to manufacture its core copper and low-k tools. The vast new open ballroom-type cleanroom with full sub floor has room for 40 assembly bays and 40 test bays (below), and can assemble tools from kit to ship in 27 days. Above, Novellus CEO Richard Hill (left), Tualatin mayor Lou Ogden (middle), and Chamber of Commerce president Nita George (right) cut the ribbon.
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Ebara Corp., Tokyo, Japan, has opened an R&D center in San Jose, CA. The new lab has a staff of 30, including 20 local workers, and cooperates with Ebara's plant in Fujisawa, Kanagawa Prefecture, which has 220 R&D employees, thereby enabling around-the-clock research operations.
eMagin Corp., Hopewell Junction, NY, is getting additional funding for its Phase III Small Business Innovation Research (SBIR) contract from the US Air Force. The $1 million contract will be used to further advance and integrate high-resolution active matrix OLED microdisplays.
Pall Corp., East Hills, NY, has completed its acquisition of Filterite, Timonium, MD, and other divisions of the filtration and separations group from USFilter Corp., a subsidiary of Vivendi Environment. The other acquired divisions include Fluid Dynamics, SeitzSchenk and Schumacher, and Exekia.
Rudolph Technologies Inc., Flanders, NJ, has created a new business unit dedicated to integrated metrology and to producing a line of integrated metrology modules. The new line is targeted for yield and overall process improvement.
Mentor Graphics Corp., Wilsonville, OR, and Innoveda, Marlboro, MA, a provider of electronic design automation technology, have signed a definitive merger agreement providing for Mentor to acquire all of the outstanding shares of Innoveda for some $160 million.
Mentor Graphics has also signed a partnership agreement with TransEDA, Los Gatos, CA, a provider of verification solutions for electronic designs, which gives Mentor Consulting access to TransEDA's coverage analysis and HDL-checking tools.
TORREX, Livermore, CA, a developer of low-pressure CVD and ALD systems, has signed a joint development agreement with an unnamed semiconductor manufacturer to develop advanced ALD technology. The development program will be implemented at both companies' facilities.
PPT Vision Inc., Minneapolis, MN, and Electroglas Inc., San Jose, CA, have formed a partnership to develop high-precision, high-speed inspection systems. Under the terms of the agreement, PPT Vision will design and manufacture a custom SpeedScan 3-D sensor for integration and commercial deployment in Electroglas' QuickSilver 2-D and 3-D wafer inspection systems.
BOC Edwards, Wilmington, MA, has reached an agreement to acquire the business of Semco Corp., Livermore, CA. Semco will be integrated into BOC Edwards' chemical management business. The value of assets acquired is some $3 million. In addition, BOC Edwards will assume $4 million in debt.
In other BOC news, the company is set to move its Minnesota-based chemical management business to a new facility in Chanhassen, MN, this month. The new facility, designed to support the company's chemical management operations, will include a new R&D lab, Class 10,000 cleanrooms, customer-training labs, and a dedicated software and controls lab analysis.
GE Capital Leasing Corp., Stamford, CT, is set to start leasing semiconductor equipment, and will sell used equipment. The move follows GE Capital Leasing's acquisition of all of the assets of Comdisco Equipment Solutions Inc.
Electro Scientific Industries Inc., Portland, OR, has developed a new IC package inspection system in a strategic partnership with OptiViz Technology Inc. The system, according to the companies, will perform high-speed, 3-D inspection of ball grid arrays, chip-scale packages, and other bumped ICs handled in trays.
Microsemi Corp., Irvine, CA, has agreed to sell its low-frequency RF bipolar transistor business (located in Montgomeryville, PA) to Advanced Power Technology Inc., Bend, OR. The purchase price of the business and assets was some $12.2 million in cash. The 20,000 ft2 Montgomeryville facility houses a wafer fab and RF semiconductor-manufacturing operations.
"Jazz Semiconductor" has been selected as the name for the new independent pure-play mixed-signal and RF silicon wafer foundry founded in March 2000, and previously operating under the interim name SpecialtySemi. The Carlyle Group is the majority shareholder of the new company. Jazz, Newport Beach, CA, has 27 customers, and provides silicon-based wafer foundry services using process technology such as SiGe BiCMOS.
Encompass Materials Group Ltd., Vancouver, WA, has purchased the business operations and assets of TTI Silicon. The new company specializes in reclaim services for 150- and 200mm silicon wafers, brokerage services for silicon materials, and other fab services for thin films and oxides.
Brooks Automation Inc., Chelmsford, MA, has opened a software support center in Europe. The center has facilities in Ghent, Belgium, and Livingston, UK. The languages supported initially will be Dutch, French, German, and English.
Matheson Tri-Gas, Parsippany, NJ, has opened an air separation plant in Irving, TX. Construction began in March 2001, and the plant was completed and online in December 2001. The new plant produces electronic-grade liquid oxygen, liquid nitrogen, and liquid argon. The plant was engineered and constructed by Nippon Sanso Corp., parent company of Matheson Tri-Gas.
Thermo Nicolet, Madison, WI, a designer and producer of FT-IR and Raman analytical instruments, plans to join the SiLKnet Alliance, helping to speed development of measurement techniques for characterizing SiLK film and porous SiLK film properties using its FT-IR analysis tools. Current members of the SiLKnet Alliance include: Arch Chemicals Inc., Ashland Specialty Chemical Co., ATMI MLS Photo/Etch Solutions, Axcelis Technologies, Dainippon Screen Mfg. Co. Ltd., The Dow Chemical Co., EKC Technology Inc., Ferro Corp., General Chemical Corp., Planar Solutions LLC, SEZ Group, Supercritical Systems Inc., Tokyo Electron Ltd., and Verteq Inc.
Mykrolis Corp. has signed a 12-year lease for a new corporate headquarters, R&D, and manufacturing facility in Billerica, MA. The move is the final phase of Mykrolis' separation from its former parent company, Millipore Corp. The 175,000 ft2 facility houses some 250 employees from its corporate offices and R&D labs formerly located in Bedford, MA, and the manufacturing operations in Millipore's Jaffrey, NH, plant. Mykrolis also relocated some manufacturing operations to the Billerica facility from its plant in Yonezawa, Japan.
EUROPE
Infineon, AMD, and DuPont Photomasks plan to establish a new advanced photomask facility in Dresden, Germany, with investments of around EUR 360 million over the next five years. The facility will be used to develop and pilot-manufacture next-generation lithographic photomasks for exposing patterns on semiconductor silicon wafers. The companies are creating a joint venture, Advanced Mask Technology Center GmbH & Co. KG. Additionally, DuPont Photomasks was selected as Infineon Technologies' strategic photomask supplier, as the two companies entered into a 10-year supply agreement.
Dai Nippon Printing (DNP), the Tokyo-based photomask manufacturer, and Geneva-based chipmaker STMicroelectronics have formed a strategic alliance for the development and supply of high-end photomasks. Under the agreement, a new company — DNP Photomask Europe — will build and operate a photomask production facility next to ST's site in Agrate, Italy. The plant is expected to begin operations in mid-2003.
Cognex Corp., Natick, MA, has signed an OEM agreement with Alphasem AG, Berg/TG, Switzerland, a manufacturer of die-bonding and sorting equipment. Under the terms of the agreement, Alphasem is set to purchase some $1.3 million of Cognex's MVS 8100 machine vision systems over the next 18 months. Alphasem will integrate Cognex's vision systems into its Swissline 902x range of die-bonding and sorting equipment.
Okmetic, a Finnish silicon wafer producer, is set to start volume production of SOI wafers at its plant in Espoo, Finland. Current applications for the wafers are mostly in optical devices and power electronics.
Newport Corp., Irvine, CA, has completed the sale of the contact measurement portion of its industrial metrology business to Hexagon AG, Nacka Strand, Sweden. The transaction concludes the first step in a two-step plan by the company to divest itself of a majority of its industrial metrology systems division. The second step involves the sale of its US-based, noncontact metrology business to a separate buyer. Cash proceeds from both transactions will be $10 to $12 million.
AIXTRON AG, Aachen, Germany, and AmberWave Systems Corp., Salem, NH, have signed a license and development agreement for CVD equipment used in strained silicon technology. Under the terms of the agreement, over the next three years, AIXTRON and AmberWave will jointly develop and qualify CVD equipment for the production of SiGe and strained silicon epitaxial layers.
Adept Technology Inc., San Jose, CA, has formalized a partnership with DEK, Cardiff, UK, to develop a fully automated wafer-handling solution for DEK's screen printer wafer-bumping and ball-placement system. Terms of the agreement were not disclosed.
ASIA PACIFIC
Asia Pacific MEMS System Corp., Taipei, Taiwan, an IDM, is set to acquire a chipmaking factory from Winbond Electronics Corp. this month. Asia Pacific paid NT$420 million for the facility, which processes 125nm silicon wafers using a 0.8μm CMOS process. Asia Pacific will upgrade the fab into a 150nm fab for producing CMOS MEMS.
Ashland Specialty Chemical Co., a division of Ashland Inc., has teamed up with Ashland Union Electronic Chemical Corp. (AUECC), Taiwan. Under the agreement, AUECC will be responsible for manufacturing and distributing electronic chemicals, and Ashland will oversee product sales and customer service for the greater China region.
Matheson Tri-Gas, Parsippany, NJ, has completed the expansion of its Chonan, Korea, facility. The facility is operated by MGPK, a wholly owned subsidiary of Matheson. The overall storage space in the new facility has been increased by some 270%, and houses a dedicated space for storage of hydride and corrosive gases, a new lab, and new administrative offices.
Cadence Design Systems Inc., San Jose, CA, has entered a joint venture to establish a software institute in Beijing, China, which will train postgraduate-level engineers in electronic design. The JV is between Cadence Design Systems Asia Ltd. and Beijing Zhongguancun Software Education Co. Ltd. Cadence will provide software and hardware for running the software; a curriculum; and application engineers to help train the students. Beijing Zhongguancun Software, which is composed of several Beijing-based investment companies, will provide land for the campus, buildings and facilities, and operating funds for the institute's first year.
JAPAN
Japan's equipment consortium Selete is forming an EPL Forum to broaden the exchange of information on e-beam projection lithography. The plan is to include infrastructure suppliers and companies that are not members of Selete to share data through periodic meetings. Though the first steps are being promulgated by Selete in Japan, members will be solicited worldwide. Initial participants include HOYA, Fujitsu, Hitachi, Matsushita, and NEC.
UltraRF Inc., a wholly owned subsidiary of Cree Inc., has signed an agreement with Hitachi Kokusai Electric of Japan for the development of high-power amplifier modules based on UltraRF's LDMOS-8 technology.
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Toshiba Corp., Tokyo, Japan, and Samsung Electronics Co. Ltd., Seoul, Korea, have agreed to manufacture and market network-specific DRAM, which they will both handle separately. Toshiba has also acquired 400,000m2 of land, including future purchase rights, in Hangzhou, Zhejiang Province. Toshiba's in-house companies and its group companies will use the site.
NEC Corp., Tokyo, Japan, plans to spin off its semiconductor-related operations as of November 1. The spin-off excludes the company's DRAM activities. NEC will initially hold a 100% stake in the newly launched company, where its chip operations will be transferred. The new company is expected to earn x700 billion in annual sales, and to have a work force of 25,000.